Switzerland: KOF Leading Indicator fell sharply in May

According to the report from KOF Economic Research Agency, economic Barometer fell again in May. It therefore dives further below its long-term average. The Swiss economy is developing rather sluggishly.

The KOF Economic Barometer drops by 1.8 points in May to 94.4 points from 96.2 in April (this figure is unchanged compared to the previous publication). Economists had expected decrease to 95.9.

The majority of sets of indicators are tending downwards. The indicators for banking and insurance, consumption and foreign demand have developed negatively. The prospects for accommodation and food service activities and the other service providers have become gloomier. In the manufacturing sector, the outlook hardly changed compared to the previous month. For the construction sector, the outlook has improved.

In the goods producing sectors (manufacturing and construction), the business situation is under pressure. The employment outlook also deteriorates slightly. Production could, however, develop positively in the coming months, so that the data in the goods producing sector do not show a completely uniform development.